Manufacturers Urge U.S. Authorities to Restrict Chinese Automakers
WASHINGTON, February 23 – AU.S.. manufacturing trade group, the Alliance for American Manufacturing, has called on the Biden administration to take measures to block the import of low-cost Chinese automaker products from Mexico, expressing concerns about the potential threat to American car companies’ viability.
In a report, the group highlighted the risk posed by introducing cheap Chinese autos, backed by the financial support of the Chinese government, into the American market. The Alliance for American Manufacturing argued that such imports could have severe consequences, potentially leading to mass plant closures and job losses in the U.S. auto sector.
The group urged the United States to take action to prevent automobiles and parts manufactured in Mexico by Chinese-headquartered companies from benefiting from the North American free trade agreement. The report emphasized the need to close the commercial backdoor that allows Chinese auto imports to enter the U.S. market.
Vehicles and parts produced in Mexico can qualify for preferential treatment under the U.S.-Mexico-Canada trade agreement and may also qualify for a $7,500 electric vehicle tax credit. The report pointed out the potential implications of these incentives for Chinese automakers operating in Mexico.
The issue gained renewed attention following reports that China’s BYD plans to establish an electric vehicle factory in Mexico. BYD, recognized for its affordable models and diverse lineup, recently surpassed Tesla to become the world’s top electric vehicle maker in terms of sales. Tesla announced plans to build a factory in Mexico almost a year ago.
A bipartisan group of U.S.. lawmakers have also urged the Biden administration to consider increasing tariffs on Chinese-made vehicles and exploring measures to prevent Chinese companies from exporting products from Mexico to the United States. The Chinese Embassy in Washington and the U.S. Trade Representative office have not commented immediately.
